Question #54
Reading: Reading 10 Multinational Operations
PDF File: Reading 10 Multinational Operations.pdf
Page: 31
Status: Unattempted
Correct Answer: A
Part of Context Group: Q54-55
First in Group
Shared Context
Question
Which of the following treatments is most likely correct regarding the items outlined in Heltzel's concern?
Answer Choices:
A. The balance should be translated at the historic rate as it is a monetary item
B. The balance should be translated at the closing rate as it is a monetary item
C. The balance should be translated at the historic rate as it is a non-monetary item
Explanation
Deferred revenue is a non-monetary liability and should be translated at the historic rate.